The UAW Issues: From Auto Workers to Casino Workers

The UAW Issues: From Auto Workers to Casino Workers

            The United Auto Workers according to the UAW main website is the, “International Union, United Automobile Aerospace and Agricultural Implement Workers of America.” The UAW is more than just an automotive union famously portrayed in the recent auto industry crisis. The UAW also represents workers state and local governments, colleges, universities, hospitals and private nonprofit organizations. The size of businesses that there represented workers work in are from multinational corporations to small manufacturers. The number of members in the UAW amounts to about 513,000 active members and more than 575,000 retired workers in the US, Canada, and Puerto Rico. UAW also has 800 local unions and “currently 3,100 contracts with some 2000 employers in the US, Canada and Puerto Rico.” Union workers who are in the UAW are actively passionate even when there in retirement, many participating in retiree chapters which amounts to 690 chapters. The UAW have been involved in many collective bargaining breakthroughs that are quoted from the UAW main website, “the first employer-paid health insurance plan for industrial workers, the first cost-of-living allowances, a pioneering role in product quality improvements, landmark job and income security provisions, comprehensive training and educational programs. United Auto Workers union also states that not only that they are successful at the bargaining table but from there early days quoted from the website, “the UAW has been a leader in the struggle to secure economic and social justice for all people. The UAW has been actively involved in every civil rights legislative battle since the 1950s, including the campaigns to pass the Civil Rights Act of 1964, the Voting Rights Act of 1965, the Fair Housing Act, the Civil Rights Restoration Act of 1988 and legislation to prohibit discrimination against women, the elderly and people with disabilities.” UAW also states that they had a big role in passing landmark legislations such as Medicare and Medicaid, the Occupational Safety Act, Employment Retirement Act, and the Family and Medical Leave Act. Also according to the UAW website the organization states that they care about the education, health of people and other commonwealth of people stating, “In Washington and state capitols, the UAW is fighting for better schools for kids, secure health care and pensions for retirees, clean air and water, tougher workplace health and safety standards, stronger worker's compensation and unemployment insurance laws and fairer taxes.”(UAW 1)

The current president of the UAW is Ron Gettlefinger who was elected for a second term on June 14, 2006. Gettlefinger’s views is healthcare for every man, woman, and child in the US. According to the UAW bio, “Under Gettelfinger’s leadership, the UAW has continued its fight for fair trade agreements that include provisions for workers’ rights and environmental provisions; and the union has loudly criticized the corporate global chase for the lowest wage which creates a race to the bottom that no workers, in any country, can win”(UAW 2) Which basically means that they oppose the corporate need for lower wages and feel that everyone should have an adequate wage. However, with this recent economic crisis the UAW’s goal of getting a good deal for their workers might be over. The union are finding themselves on the rope having to deal with layoffs with buyouts, early retirements, and the threat of a General Motors bankruptcy. However the cavalry of the UAW is still there fighting for better working conditions as before.                          

The UAW has had to face many layoffs but with buyouts and benefits to go along with the hard task of leaving a job. Ford Motor Company has list of benefits of an “indefinite layoff” worker. Below are some elements of the benefits that the Ford employee gets quoted from the Ford Benefits sheet.-(Ford Benefits 1)

Seniority Lay-off (OB)

Benefits Coverage Matrix – UAW Hourly Employees

Health Care: • Hospital • Surgical • Medical • Prescription drug                    • Dental • Vision • Hearing	If employee has less than one year of seniority, coverage ends the last day of the month following the month that the employee last worked. If employee has one year or more of seniority, coverage ends the last day of the month following the month that the employee last worked, PLUS the additional months of coverage according to the Schedule on pages 3-4. Eligible for continuation under employee cash pay, for up to 12 months after Company-paid coverage ends, by paying 100% of the full group rate. Coverage can be continued under COBRA for 18 months from the Lay-off effective date by paying 102% of the full group rate. The employee may choose between continuing coverage under employee cash pay rules or under COBRA rules, but not both.
Company-paid Life & AD&D Insurance: • Employee Life • Accidental Death & Dismemberment (AD&D) • Survivor Income Benefit (SIB)	Coverage continues through the last day of month following the month that the employee was laid off, PLUS if the employee has more than one year of seniority, additional months of coverage will be continued based according to Schedule on pages 3-4. Within 31 days of loss of coverage, the employee may apply to the insurance carrier to purchase, at their expense, an individual conversion policy for the Life insurance and SIB. Conversion is not available for AD&D. Questions may be directed to UniCare at 1-800-843-8184.
Supplement Unemployment Benefits (SUB) Quoted from UAW Ford report, Supplemental Unemployment Benefits (SUB). Entry-level workers with at least one but less than three years of seniority will be eligible for 26 weeks of SUB. That increases to 52 weeks (which can be extended) for workers with three or more years of seniority.(UAW 3)	Employee certifies with State Unemployment Compensation (UC) Agency and reports other earnings (holiday pay, partial week pay, outside earnings, etc.). Auto SUB States - State reports UC payments to the Company and an Auto SUB check is processed. Manual SUB States - Employee reports UC payments to Company and applies for SUB. SUB checks are processed on Thursday for data reported to Payroll by noon on Wednesday or processed on Monday for data reported to Payroll by noon on Friday.
Profit Sharing Plan Definition according to (InvestorWords 1) An arrangement in which an employer shares some of its profits with its employees. The compensation can be stocks, bonds, or cash, and can be immediate or deferred until retirement.	Eligible to receive profit share provided employee has eligible earnings in the plan year that lay-off occurs; eligible earnings exclude compensation received while on lay-off.

The list explains some of the benefits that a Ford UAW worker would get if there was an indefinite layoff of that worker. However, a statement quoted from the Ford benefits sheet, “It is our intent to provide you with accurate information. In the event of a discrepancy, the Ford

policies, programs and benefit plans are controlling. Any information provided to you does not

create a contract with Ford Motor Company. Ford may, subject to applicable collective bargaining agreements, modify or terminate any plan, policy, or program.”. This previous statement means that these benefits can change at any time.(Ford Benefits 1)

There are looming events of layoffs however, from the American auto industries. General Motors had 7,500 workers laid off giving the workers either an early retirement or a buyout in late March. The Baltimore Sun states, “About 90 percent of the employees who are leaving have opted for early retirement, under which they will receive about $37,000 per year plus benefits, GM officials said in a conference call.” …..The reductions leave GM with about 60,500 hourly workers. The latest round of buyouts and early retirements at GM was the third for the company since 2006. Under all three offers, more than 60,000 workers have decided to leave the company.”(Baltimore Sun 1)  Even with this move of GM and many others to try and prove that the company can be operable the company has been denied a bailout, the CEO was forced to step down, there deadline extended and even the talk of bankruptcy. The interim chairman is even unsure that concessions can be worked out with the UAW and the bondholders stating, “I can’t really say I’m optimistic” that a deal can get done in time, Kent Kresa told The Detroit News on Tuesday. “Can we do it? I do not know. Are we trying? Yes. I’m hopeful we can get there. (KC Star 1)
             In an extremely frightening scenario the UAW workers at GM could see a large cut in their retirement and healthcare funds as well as many more layoffs if GM decides to file for bankruptcy. Time quotes that, “With the national unemployment rate moving up as fast as it is and large numbers of pensions facing funding problems, the federal government may not want to be forced to support current and retired GM workers. Someone will have to pay for the healthcare of the tens of thousands of retired GM employees.” This however, doesn’t only affect the UAW workers in GM but, also other workers from suppliers”(Time 1). The Wall Street Journal quotes,” Bankruptcy would give the companies the ability to tear up their UAW contracts and impose another wave of deep cuts in auto workers' wages and healthcare benefits. At stake are the fortunes of about 141,000 UAW members -- down from 300,000 about five years ago -- and hundreds of thousands of retirees.(Wall Street Journal 1)  The White House and the administration seems to want GM to declare bankruptcy stated in World Socialist, “The Obama administration is widely expected to use the bankruptcy courts to break up GM into two companies—a “good” one, which will retain Chevrolet, Cadillac and other profitable brands and assets and a “bad” GM that includes Hummer, Saturn, some closed plants and massive debts, including billions in pensions and medical benefits owed to retirees.” Before the expected plan of GM splitting into to two takes place the World Socialist states that, “Before making such a deal, Businessweek reports, the government wants the UAW to accept more than half of $20 billion owed to its retiree health care fund in stock instead of cash. The administration also wants the UAW to accept an entirely new contract, which sharply cuts medical benefits and reduces current workers’ wages to the level of non-union workers at Japanese-owned plants in the US.” This statement indicates that they want the UAW workers to acquire stocks in place of the more than half of the $20 billion which seems that the Obama administration is expected to take the road that Ford Motor Company is taking. (World Socialist 1) UAW back in February made a deal with Ford similar to what Businessweek quoted, “The agreement, announced Monday, would allow Ford to substitute its stock for as much as half of the $13.6 billion it owes the fund.”(NY Times 1) The Time article interestingly points out that the biggest employer of the nation is retailing and gives two reasons for it as stated in the Time, “The largest retailers have two advantages over car companies. For the most part, they do not have crushing debt loads. Secondly, they do not have the legacy labor costs that are a result of UAW negotiations with The Big Three, although some have pension plans that are not completely funded.”(Time 1)

            The UAW is not only a car union as stated earlier in this report; the UAW also has workers who work for the casinos. The UAW and other unions have broken through the ranks of the casino industry, “Two years ago, 80 percent of casino dealers at Caesars in Atlantic City voted in favor of UAW representation. Full- and part-time dealers and slot techs at Tropicana, Trump Plaza and Bally's have also voted to form their own unions, but casino operators have either refused to bargain or stalled the negotiating process.”(UAW 4) This would include full and part time dealers, keno and simulcast workers at Caesars as well as Bally’s, Trumps Plaza, and Tropicana slot technicians, casino dealers and other casino workers also formed unions. There more than 8000 workers that are in the gaming industry in the UAW from Atlantic City, Connecticut, Michigan, Rhode Island, Indiana and Michigan.(UAW 5) The UAW Secretary-Treasurer stated that, "It's about workers who have had their hours reduced, who are paying more for health care, who have lost their seniority rights, and who have been shut out at the bargaining table by casino executives who make millions of dollars a year." There is a new Gaming workers Council as of March 16, 2009 which represents casino workers from, Atlantic City, Las Vegas, Detroit, and Connecticut, “with a broad organizing, bargaining and communications agenda.” Enthusiasm from many casino workers, “Sharon Masino, a casino dealer at Caesars in Atlantic City and a member of the UAW/AC Dealers Union.”With everybody joining together, we'll be stronger than ever. We're going to win good contracts in Atlantic City and move on to help casino workers all over the country." The Gaming Workers Council will consist of the UAW, the Transport Workers Union(TWU) Gaming Division, Service Employees International Union (SEIU), and American Federation of Labor and Congress of Industrial Organizations (AFL-CIO). UAW as well as the other unions that are stated will have a joint effort and according to the UAW news, “The council's first order of business will be support for ongoing contract campaigns for casino dealers in Atlantic City.”(UAW 4)

“The council will also assist bargaining efforts on behalf of casino workers in Las Vegas, Indiana, Connecticut and elsewhere who have voted to form their own unions and are fighting to win first contracts; reach out to hundreds of thousands of unorganized casino workers; and communicate information about working conditions in the gaming industry to union members, the public, elected officials, casino regulators and investors.”(UAW 4) The union seems to be necessary because in the recent 2 years casino dealers voted the TWU with a huge margin in placed like Wynn and Caesars Palace in Las Vegas. The workers voted for the TWU quoted from the UAW News, “management tried to grab their tip money and cut their pensions and other benefits, but casino executives there have also failed to meet their responsibilities to bargain fairly with workers.” Apparently there has been great success of union workers and casino’s, “Tina Phillips, a back of the house banker at MGM Grand in Detroit and chair of the MGM Grand bargaining unit of UAW Local 7777. "We negotiated our first contract in 2000, and two more since then, with good pay, a grievance procedure, and secure benefits. Our casinos in Detroit have actually increased revenue this year. Having a union contract works for us -- and I'm sure it will work in Atlantic City and Las Vegas as well."(UAW 4)                                                                                            

The UAW recently as March 23 has put up an ad campaign that informs gaming consumers about labor disputes with the casinos. According to the UAW news article, “The ads are part of a multimillion dollar effort to inform the public that casino dealers have had their hours reduced, their retirement benefits cut and their seniority stripped away while casino management either stalls progress at the bargaining table or breaks the law by refusing to negotiate.” The fact that the CEO Gary Loveman of Harrah’s who owns Bally’s and Caesars pay themselves million, his salary 39.6 million in 2008 while cutting workers benefits and their hours is unacceptable for union members working for these casinos. Below shows how the voting of the forming of a union took place in these casinos cited from Fair Deal for AC Dealers website.(UAW 5)

 

The latest news comes out of the press of Atlantic City where there is union protest of Tropicana. According to the press of Atlantic City, “Dozens of employees of the Tropicana Casino and Resort demonstrated outside the gaming hall Friday night, as part of an informational picket calling for a contract with their employer.”(Atlantic City 1) The dealers still don’t have a contract with Tropicana after they joined the UAW in 2007, “Dealers at three other Atlantic City casinos voted to join the UAW, but none have negotiated a contract. This stems from the authorization of a strike in Atlantic City, 97% of dealers voted in favor of strike authorization in a news release dated Feburary 28, 2009. One employee states that it has been a long wait, "Waiting 18 months to get a contract, that's just unacceptable," said Al Welenc, a Tropicana dealer who is also an elected member of the union bargaining committee.” The UAW has attacked the Tropicana management with unfair labor practice charges, “stating that the casino has illegally disciplined casino employees, failed to bargain in good faith and illegally changed the terms of the employee health care plan without first bargaining with the union.” The change in the employee health care premium was raised and family coverage could be as high as $1,300 per year. Even with the strike authorization as well as protests, the management of the Tropicana seems like they are not budging.(UAW 6) The UAW gaming industry must not have respect yet since this is rather a new UAW membership which started in 2007.

            The UAW no matter how weak or powerful will be in the light of futures to come, because they will always expand into new and different industries such as the gaming industry. Although the UAW will seem that it has taken serious steps back as far as layoffs and loss of membership they will do what the union thinks is best for their members and in this economic crisis and the auto industry that means saving their jobs. Even though the days of the auto industry compensation, benefits, pensions, retirements, etc. might be over for the time being because of the recession and the failing auto companies. However, the UAW is currently battling the front of benefits and contracts in the gaming industry although there has been a stalemate as far as negotiations. There will always be a new venture for the UAW whether they conquer another industry as they did the auto industry remains to be seen.

Works Cited

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